Transactions, redundancies, restructurings and outsourcing

We regularly deal with the employment aspects of transactions including share sales, business transfers and outsourcings. Our work includes conducting due diligence, advising on warranties, disclosures and indemnities, and managing the practical employment problems that can arise. We frequently advise on the effect of the Transfer of Undertakings (Protection of Employment) Regulations 2006 (known as TUPE). 

When TUPE applies to a transaction we can help you to determine which employees transfer and how this affects their terms of employment. We can help with communications with those employees, including the provision of information to, and consultation with, employee representatives and, if necessary, the election of employee representatives. We also advise on the provision of employee liability information.

TUPE can also apply to outsourcings. We are used to dealing with service provision changes as well as traditional business transfers. We work with clients to formulate a strategy to comply with their obligations under TUPE from the invitation to tender onwards. We are experienced at finding the best way not only to deal with the outsourcing process itself but also to manage any consequential matters which may arise, such as redundancies or changes to terms of employment. 

There are many reasons for redundancies, including technological developments, changes in the nature of services or products provided by the employer, and economic pressures making business closure or reduction in staff numbers necessary. The process is rarely easy for employer or employee but planning the process carefully so that communications with employees are clear and the process is managed efficiently but humanely can make a huge difference.

Following the correct redundancy procedure minimises the risk of wrongful dismissal, discrimination or unfair dismissal claims.  In addition, if you are proposing to make 20 or more employees redundant at one establishment within 90 days, you have an obligation to inform and consult with employee representatives. Breaching your collective consultation obligations can be expensive, with protective awards of up to 90 days’ pay for each affected employee.

We regularly advise clients on their redundancy procedures and help to manage them efficiently and with the minimum legal risk. Where claims do arise, we can  defend organisations in the Employment Tribunal or High Court.

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